Sean C. Morgan
The Sweet Home City Council adopted a resolution on Nov. 26 that will allow two existing employees, along with potential future employees, who are shut out of the city’s new health savings account program to receive the same benefit as other city employees.
Earlier this year, the council ratified contracts with its labor unions establishing the creation of health savings accounts as an effort to reduce health insurance costs, creating a way to provide raises while remaining cost neutral.
Employees or spouses who have coverage by a “health reimbursement account,” a “flexible savings account” Tricare, veterans medical benefits, Medicare or Bureau of Indian Affairs benefits are not eligible, based on IRS codes and federal regulations, said Finance Director Pat Gray. They can qualify for a “health reimbursement arrangement through the Voluntary Employee’s Beneficiary Association, which serves as a sort of “work-around” and provides an effect similar to the health savings accounts other employees receive.
Under the programs deductibles are $1,500 for single employees and $3,000 for families. The employees pay 5 percent of the premium. The city pays 95 percent.
The city contributes $1,250 to the health savings account for individual employees and $2,500 for families. Future increases in health insurance premiums will be deducted from the city’s contribution to the health savings accounts.
City Manager Craig Martin said the overall increases in the contract provisions will be limited due to the savings in health insurance over the next three years, and it will be cost neutral.
Present at the meeting were councilors Marybeth Angulo, Craig Fentiman, Bruce Hobbs, Greg Mahler, Scott McKee Jr. and Dave Trask. Mayor Jim Gourley was absent.
In other business, the council:
n Held the second reading of an ordinance that will allow Sweet Home Sanitation to raise rates. The third and final reading will be on Dec. 10. The council may take action on the ordinance following the third reading.
n Held the second reading of an ordinance that will change references to “infractions” to “violations,” matching language in state law regarding non-criminal offenses. The third and final reading will be on Dec. 10. The council may take action on the ordinance following the third reading.
n Declared surplus a 1997 Ford Escape.
The vehicle was purchased used. The building official used it originally. Most recently it was used by the code enforcement officer. It has not been used regularly for the past couple of years.
The vehicle will go to the Oregon Department of Administrative Services for auction.